Ronald Wastewater District pays off debt

The elected Board of Commissioners of Ronald Wastewater District decided at the regular meeting of January 10, 2012 to use available cash to pay off three Public Works Trust Fund (PWTF) loans.

The outstanding balances of the three loans totaled $727,135.84. By paying off the debt, the District saves $81,044.91 in interest that would have been due had the loans gone to maturity. The loans were obtained in 1995, 1998, and 2000 to update the District’s sanitary sewage pump stations.

“The District was paying two percent on the 1995 loan and three percent on the 1998 and 2000 loans,” said Board President, Brian T. Carroll. “With our invested money returning approximately a half percent in the King County Investment Pool, it made financial sense to pay off the higher interest loans and save more of the ratepayers’ money.”

The District has two loans remaining with the PWTF, both costing only a half percent. The balance on these two loans is $1,929,330; one matures in 14 years, the other matures in 18 years.

Ronald Wastewater District, an independent special purpose district, has a Moody’s rating of Aa2.